An investor in a fixed maturity plan (FMP)—DSP FMP - Series 196 - 37M maturing on 1 August—recently reached out to Mint following a communication from the fund house. DSP Mutual Fund’s email to the investor pointed to the FMP’s exposure to DHFL and IL&FS Energy Development Co. Ltd, which were written off and some payments were outstanding to the FMP against the troubled paper. It said that “any substantial future gains within two years, on account of receipt of cash flows from above securities will be paid to investors of the Scheme as per SEBI (Mutual Funds) Regulations, 1996." The investor asked us what will happen if the money is recovered after two years?
Nine big financial changes that you must watch out for in October
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